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Just like medical costs, you can only get a deduction in this catch-all category if your expenses exceed a threshold: two percent of your adjusted gross income in this case.

 
The list of qualifying expenses is long, but you get no tax savings unless you pass the two percent floor. As you get your bearings in November, see how close you are to the threshold. If it is certain you'll fall short, hold off paying qualifying expenses, such as professional dues and the cost of subscriptions to tax or investment publications, or postpone buying small tools for use in your job. If it's likely your expenses will exceed two percent of AGI, speed up such spending to exploit the tax subsidy. For a full list of miscellaneous deductions, see IRS Publication 529.

Also, keep in mind that miscellaneous expenses are not deductible when calculating whether or not you'll be subject to the AMT.

Highbaugh Tax - 317.345.4182 - Business Hours 10am - 6pm (EST) Monday thru Friday, limited hours on Saturday. Call for an appointment.


Ready to purchase or sell a home and need some help.  Contact Keya Benberry, 317.270.3311 at Buy with Benberry Realty Group.  Tell her Tami sent you.


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Copyright © 2006 Highbaugh Tax
Last modified: 01/06/08